Question

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Eco.(grad.)

Statement: "Super normal profit can be positive, negative or even zero. "

Q. How Super normal profit negative or even zero?

explain in detail..... NO misleading ans. plz.​

Answer 1

Answer:

Super-normal (economic) profit. If a firm makes more than normal profit it is called super-normal profit. Supernormal profit is also called economic profit, and abnormal profit, and is earned when total revenue is greater than the total costs. Total costs include a reward to all the factors, including normal profit

Answer 2

Explanation:

A positive profit is called supernormal profit or abnormal profit. Remember that this profit is economic profit where TC should take into both accounting and opportunity costs. As long as opportunity costs is not zero which is very likely then a zero economic profit means positive accounting profit.